As homeownership grows increasingly out of reach for millions of Americans, new data shows a record wave of renters reshaping the housing market. According to Chandan Economics, in partnership with Arbor Realty Trust, the number of multifamily rental households reached an estimated 22 million in 2024—the highest level on record—with continued steady growth projected through 2025.
Chandan’s analysis estimates that multifamily rental households rose between 1.6% and 1.8% from 2022 to 2024. Assuming the same pace continued, the total is expected to have hit 22.4 million in 2025, an all-time high reflecting an increase of about 372,944 new rental households. Despite slower population growth, including reduced immigration and lower birth rates, the share of Americans renting rather than owning has surged. Official government confirmation of the figures isn’t expected until early 2027.
The expansion marks a dramatic shift from 2020, when multifamily households had dipped to 19.4 million. The gain of roughly three million units over five years—a 15.4% rise compared with just 5.3% growth in total U.S. households—is the largest five-year increase in more than two decades.
A mix of economic and demographic forces has reinforced demand for multifamily housing. One major driver, according to Chandan and Arbor, is the “limited pathways to affordable homeownership.” Rising mortgage rates and home prices have made buying unattainable for many: between the second quarters of 2020 and 2025, the national median sales price jumped from $317,100 to $410,800, a 29.5% increase, according to Federal Reserve data.
Estimates from the Federal Reserve Bank of Atlanta show that housing costs now consume about 43% of median income—far above the traditional 30% affordability threshold. That assumes a median household income of $85,000, a median home price of $405,300 and an interest rate of 6.3%, which together translates to a median monthly payment of roughly $3,059, including principal, interest, taxes, insurance and PMI.
Employer expectations for a return to in-office work have further reinforced rental demand in urban areas, where proximity to jobs and transit remains a priority. Meanwhile, the multifamily supply boom has helped sustain the surge in renters. According to Chandan, 591,400 new multifamily units were completed in 2024—the highest total since 1974—followed by another 328,500 units in 2025. That brings the annualized rate of multifamily completions to about 492,750 units.
Although construction has not been uniform across markets, increased inventory in several major metros has widened vacancy rates and slowed rent growth, offering some financial relief to tenants. CBRE reported in September 2025 that roughly 1.8 million U.S. households are effectively being pushed into lifelong renting.
“With strong structural demand intact and the supply pipeline reverting toward historical norms, 2026 should bring stabilization in both multifamily household growth and rent performance,” Chandan and Arbor noted.
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